Monopoly has been a classic board game for over 100 years but if you’ve played it, you quickly realize what it takes to keep the cash flowing to become a real estate tycoon. But the game offers wisdom that can be applied to the real world of financing. Below are four comparisons to increase your understanding and chances of securing the funding your business needs.
Based on real estate, Monopoly allows you to amass three types of assets: land, houses and hotels. Sometimes, when you are low on cash, you can trade a house or two, maybe a hotel, for a loan from the bank.
In your business, your assets can be a piece of land or a building, as well as equipment, vehicles, inventory, etc. This can be used as collateral by a lender to guarantee that you will repay them the loan they approved.
2/ Cash flow
Doesn’t it feel good to collect cash every time a player stops on your property and has to pay the rent? Yeah, lenders love that too! If you have a history of consistently collecting revenue, lenders will feel comfortable that you possess that know-how and will continue to produce, providing an ability to repay the monies they lent you.
At times we can use some help from above! In the same way that a get-out-of-jail card bails you out when you need it the most, in real life, a co-signer, someone willing to pledge their assets or personal reputation, could be just what you need to overcome current challenges.
4/Always have cash on hand
By far, this is the most important lesson in both the game and the financial world. To win in Monopoly, you have to be the last player left, in other words, the last one to have money. When you run out of cash, you may have to start selling off assets for pennies on the dollar. Once this starts happening, unless you get lucky, it becomes extremely difficult to manage the business.
As Funding Executives, we represent your interests and not those of a particular bank or lender. Our ability to easily define which funding source is right for you based on what you and/or your business has to offer lenders. Our access to a large pool of funding sources, with different appetites, and our large volume of loans allows us to negotiate down interests and other terms in your favor. Imagine growing and succeeding in your business without the concern of how do we pay for it? How do we fulfill? And much more!
“Andre you are an amazing funding executive. Keep up the great job. And helping businesses scale.” Imelda H. – Mercy Maricopa Board of Directors
18 years in business. Over $400 million secured. We are proud business growers!
Start a conversation today! Our Funding Executives are here and ready to assist you in achieving your funding objectives, which allows you to focus your valuable time on moving your needle.